Austral Gold to sell Pinguino project to E2 Metals

Highlights:

• Austral to receive US$5 million in cash, 19.99% of E2 Metals’ shares plus 15 million options in exchange for 100% of SCRN Properties Ltd., owner of the Pinguino project.
• Austral to become largest shareholder in E2 Metals with a right to appoint one board member.
• Austral to retain option to purchase either all or half of the existing 2% NSR royalty on the Pinguino project. SCRN´s main asset is the polymetallic Pinguino project, located in the Deseado Massif in the Santa Cruz Province of Argentina.

SCRN is a wholly owned Canadian subsidiary of Austral Canada. Under the terms of the Agreement, E2 is to acquire SCRN for a combination of cash, shares and options and, upon completion, Austral Canada will become the largest individual shareholder of E2.

Austral Gold’s Chief Executive Officer, Stabro Kasaneva, said:

“We firmly believe in the Pinguino project. This transaction with E2 Metals will enable us to share in the project’s potential upside and use the proceeds from the sale to fund our exploration activities in Argentina and Chile. In addition, E2 Metals’ flagship Conserrat project is close to Pinguino and upon completion, we will become the largest shareholder in an ASX-listed company with a sound shareholder base and strong position in the mining friendly Argentine province of Santa Cruz. We will also retain our 51% interest and option to acquire an additional 49% interest in the Sierra Blanca project, which is adjacent to the Pinguino project.”

Read the article online at: https://www.globalminingreview.com/mining/28112022/austral-gold-to-sell-pinguino-project-to-e2-metals/